Sembcorp's new utilities strategy holds promise

SEMBCORP Industries surprised many two weeks ago when it unveiled the results of its months-long strategic review with hardly any change in direction in its marine unit.

Instead, the firm's chief executive Neil McGregor spoke at length about its utilities business, and how it would reposition the business in light of structural changes in the sector.

These bode well for Sembcorp. The new direction means the firm would be ready for the future energy world, and potentially makes it the foremost choice on the Singapore Exchange for those looking to invest along the theme of the energy transition.

Repositioning utilities

Sembcorp's new utilities strategy entails a greater focus on sustainability. Mr McGregor said the firm would do fewer coal projects and would instead focus on growing its gas and renewables business, with a targe…